Bill Text: CA SB1441 | 2015-2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Natural gas: methane emissions.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2016-11-30 - From Assembly without further action. [SB1441 Detail]

Download: California-2015-SB1441-Introduced.html

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BILL NUMBER: SB 1441	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senators Leno and Pavley

                        FEBRUARY 19, 2016

   An act to add Section 38572 to the Health and Safety Code, and to
add Section 747.2 to the Public Utilities Code, relating to natural
gas.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1441, as introduced, Leno. Natural gas: vented and fugitive
emissions.
   (1) The California Global Warming Solutions Act of 2006 designates
the State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The act requires the board to adopt greenhouse gas emission limits
and emission reduction measures by regulation, and authorizes the
state board to include the use of market-based compliance mechanisms
in its implementing regulations to achieve those emissions goals.
   This bill would require the state board, in regulations
implementing a market-based compliance mechanism, to include vented
emissions and fugitive emissions of natural gas as counting against
the compliance obligation of certain covered natural-gas-related
entities under the mechanism.
   (2) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including gas
corporations, as defined. Existing law authorizes the commission to
fix the rates and charges for every public utility and requires that
those rates and charges be just and reasonable.
   This bill would, in establishing rates for gas corporations,
prohibit the commission from considering systemic natural gas losses
in the form of vented or fugitive emissions occurring during the
injection, storage, transmission, or distribution of the natural gas.

   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  In enacting this act, it is the intent of the
Legislature to create incentives to reduce or eliminate vented
emissions and fugitive emissions of natural gas.
  SEC. 2.  Section 38572 is added to the Health and Safety Code, to
read:
   38572.  (a) For purposes of this section, the following
definitions apply:
   (1) "Fugitive emissions" has the same meaning as set forth in
Section 39023.3.
   (2) "Vented emissions" means intentional or designed releases of
natural gas or hydrocarbon gas, not including stationary combustion
flue gas, including process designed flow to the atmosphere through
seals or vent pipes, equipment blowdown for maintenance, and direct
venting of gas used to power equipment, such as pneumatic devices.
   (b) In regulations implementing a market-based compliance
mechanism pursuant to this part, the state board shall include vented
or fugitive emissions of natural gas as counting against the
compliance obligation of covered entities engaged in the extraction,
distribution, or transmission of natural gas under the mechanism.
  SEC. 3.  Section 747.2 is added to the Public Utilities Code, to
read:
   747.2.  (a) For purposes of this section, the following
definitions apply:
   (1) "Fugitive emissions" has the same meaning as set forth in
Section 39023.3 of the Health and Safety Code.
   (2) "Vented emissions" means intentional or designed releases of
natural gas or hydrocarbon gas, not including stationary combustion
flue gas, including process designed flow to the atmosphere through
seals or vent pipes, equipment blowdown for maintenance, and direct
venting of gas used to power equipment, such as pneumatic devices.
   (b) In establishing rates for gas corporations, the commission
shall not consider the systemic natural gas losses in the form of
fugitive or vented emissions occurring during the injection, storage,
transmission, or distribution of the natural gas.
   (c) (1) This section does not prohibit gas corporations from using
ratepayer funds to repair systemic natural gas leaks or to improve
industry practices to reduce or eliminate vented or fugitive
emissions.
   (2) This section does not prohibit gas corporations from
recovering their costs incurred in compliance with regulations
adopted pursuant to Section 38572 of the Health and Safety Code.